Advice

More Than a Legal Necessity – Data Protection Helps to Protect and Maintain Your Businesses

Companies must have data protection strategies to ensure that data of all kinds related to business as well as personal data remains well protected. The reputation of companies depends on how reliable it is to customers and other stakeholders. It largely depends on their ability to protect personal data with the assurance that it is entirely safe.  Companies are responsible for protecting data to ensure compliance with data protection laws and regulations. As the amount of data storage keeps increasing the need for protecting it also keeps multiplying. Companies must prevent any compromise or data breach that ensures data privacy which is a crucial component of data protection.

Safe storage of information

The goal of data protection is to ensure the safe storage of all data, which enhances the reliability of companies that helps business growth. When people interact with companies and confide in them by sharing personal data, the least they expect is that it will remain completely safe and the company would respect their privacy. By safeguarding data, companies can demonstrate their trustworthiness and the respect for customers, employees, etc.  by protecting their interests which goes a long way in business betterment. Inability to protect data can make businesses vulnerable to hackers and damage the business prospects as people would have no faith in them.

Protecting personal data

Whenever we talk about data protection, the discussion veers towards the protection of personal data which is of utmost importance because it is related to the safety of people. Data protection is a factor that generates trust among customers, and businesses must ensure that they can live up to the expectations by preventing any data compromise or loss. For building a reliable brand, image companies must ensure that they can protect personal data that they had collected with the consent of those who shared it with them. Names, addresses, telephone numbers, emails, health information, bank and credit card details are some common personal data that companies must deal with depending on the nature of businesses and services offered.  As the data contains sensitive information of individuals that can have far-reaching effects on their lives if compromised. The need for protecting it and ensuring its complete safety assumes immense importance.

Protecting business data

On another level, data protection is vital for the survival of businesses because if sensitive business information keeps leaking, it can damage the reputation and affect performance. For example, if the competitors can access confidential data about business strategies, it can become hard to keep the business going. Therefore, companies must adopt proper security measures to store and use data safely without allowing any breaches.

Proper data management ensures business continuity in the face of data unavailability for any reason. System failures and data corruption are the reasons why data might become inaccessible. But if it is not possible to retrieve data, then it can affect business operations adversely.  Businesses must quickly recover from the setback, which is only possible if they have adequate data recovery and protection like taking data backups continuously so that inaccessible or lost data can be accessible again.

Adherence to data protection laws can fulfill the needs of protection

The importance of data protection, especially personal data, becomes evident from the way governments have introduced laws and regulations to ensure that companies undertake data protection and prevent data breaches. Data is becoming more valuable, and it requires careful processing of data by understanding its importance to ensure that there is no compromise with its security. Being ignorant of the laws or not taking it seriously can have severe repercussions on business. They not only face penalties and fines but can even lead to its closure as it could face a series of civil suits that arise from data breaches.

Greater control on data

Ensuring fair and consumer-friendly commercial transactions is another objective of introducing data protection laws. Companies that collect personal data do not have any legal stand to share the data with any other entity without the consent of the person related to it. In no way, they can sell it unless agreed by the person to whom the data belongs. The laws thus empower people to exercise greater control on their personal data as they remain aware of the ways the data is being dealt with.

What does the laws stipulate?

Data protection laws differ according to countries and states as it considers various factors that are specific to the place. However, all laws originate from some common principles that outline the broader aspects of protecting personal data or for that matter, all other data.

  • Data use must conform to the specific ways it is meant for and using it in any other way would amount to a violation of the law.
  • Sticking to data storage times is the responsibility of companies meaning they cannot store data longer than necessary.
  • Data must always remain safe and secure and used only in the appropriate ways within the boundaries of the laws.
  • The data protection techniques must be in line with the data protection rights that people enjoy, and its transfer beyond the legal jurisdiction is not permissible.

Legal compliance reinforces data protection

The robust legal framework related to data protection makes it mandatory for companies to comply with it, thereby ensuring that data remains completely protected. Although the laws are complex, and its compliance is far from easy, companies have no option but comply with it. The seeds of data protection are well embedded within the principles on which the laws and regulations are based. The laws make it mandatory for companies to follow laid down procedures so that personal data are well protected and can thwart off attempts of breaching the security.

The costs of data breaches can be too high for businesses. The affected persons may claim compensation for not being able to protect their personal data. The regulatory bodies would consider it as a result of non-compliance of the laws which attracts more punishments.

Data protection laws are one of the fundamental laws and failure to comply can have serious consequences which can even lead to imprisonment.

 

Guest post courtesy of Sujian Thomas of Site Improve

Mercy - CBNation

This is a post from a CEO Blog Nation writer. CEO Blog Nation is a community of blogs for entrepreneurs and business owners. Started in much the same way as most small businesses, CEO Blog Nation captures the essence of entrepreneurship by allowing entrepreneurs and business owners to have a voice. CEO Blog Nation provides news, information, events and even startup business tips for entrepreneurs, startups and business owners to succeed.

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